Comstock Resources Inc (CRK)

Interest coverage

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	-157,208	86,000	133,850	230,309	416,007	893,635	1,331,482	1,882,079	1,573,035	1,426,689	712,514	-8,111	-11,837	-320,694	-215,043	-33,308	173,202	110,090	280,468	346,802
Interest expense (ttm)	US$ in thousands	210,621	203,941	193,049	180,305	169,018	159,970	157,739	162,871	171,092	180,044	188,605	201,165	218,485	236,710	250,646	245,830	234,829	222,871	209,996	186,500
Interest coverage		-0.75	0.42	0.69	1.28	2.46	5.59	8.44	11.56	9.19	7.92	3.78	-0.04	-0.05	-1.35	-0.86	-0.14	0.74	0.49	1.34	1.86

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-157,208K ÷ $210,621K
= -0.75

The interest coverage ratio of Comstock Resources Inc has shown fluctuating trends over the past five years.

From March 2020 to September 2021, the interest coverage ratio declined consistently, indicating a weakening ability of the company to cover its interest obligations with its earnings.

However, from June 2022 onwards, there was a significant improvement in the interest coverage ratio, reaching a peak of 11.56 in March 2023. This suggests a strong ability of the company to meet its interest payments using its operating income during this period.

Subsequently, the interest coverage ratio declined but remained positive, indicating that the company continued to have earnings sufficient to cover its interest expenses, although at a lower level compared to the peak.

Overall, the recent improvement in the interest coverage ratio from June 2022 to March 2023 showcases a positive trend in Comstock Resources Inc's financial health in terms of its ability to service its debt obligations.